Does a modular home make sense?
If pre-fabricated housing conjures an image of a trailer home, think again. On Cape Cod, modular residences easily could cost $1.5 million or more.
Why consider this option?
• Less construction time. The entire project could be completed in six months.
• Less concern about weather. Major parts of the home are built in factories that operate year-round.
• Less cost. Time is money. In addition, modular-home builders save on volume purchases, assembly-line productivity that cuts down on waste and virtually no possibility of on-site theft. Savings for the building itself are in the 5 percent to 10 percent range, but adding the finance savings of the project will bump it up – total cost savings could be 10 percent to 15 percent less than traditional construction. That’s easily a six-figure savings.
Any savings, however, would be pyrrhic if quality is compromised. Surprising to many consumers, top-of-the-line modular homes also meet the highest building standards, so much so that insurance companies may be more inclined to cover these structures – constructed with 2-by-6 studs – in hurricane zones than they would stick-built housing.
“System-built technology already meets or exceeds all building standards and is inspected by an independent third party agency, making it a candidate for better insurance rate consideration,” said Mark Boardman of The Building Company in Orleans, which is moving aggressively into the modular home business.
Modular housing is by no means a major trend yet on Cape Cod, but it is fast peeking above the horizon. One reason is the increased volume of knock-down construction here.
Vacant land not only is increasingly scarce, but also very expensive. As a result, many people are buying cottages, knocking them down and building new homes on the land.
Remodeling older homes also carries very high – and often unexpected – costs that defy initial estimates. In many instances, demolishing and starting from scratch is the less expensive option. “Many of these older homes have serious safety issues ranging from inadequate stairs, antiquated heating and electrical systems, environmental concerns such as lead paint and any number of deferred maintenance issues,” explained Boardman.
“Customers can give us the key after the summer and come back in April to a brand-new modular home in ready-to-move-in condition,” he said.
This option may be even more attractive to those who own an older home or cottage, but want to upgrade their lifestyle without having to leave a neighborhood and friends, said The Building Company’s owner Jeff Karlson. For second-home owners, a modular home also eliminates the need to travel here during the off-season to constantly inspect the construction, he noted.
The Building Company is among a small number of construction companies on the Cape that are expanding into modular construction. “We are not abandoning ‘stick-built’ construction,” said Karlson. “We want to provide customers with an alternative.”
Constructing a home on the Cape could easily take 12 months to two years from selecting a design to putting out bids to getting permits to construction, he noted. The modular option cuts that time virtually in half. His company has partnered with New Hampshire-based Epoch Homes, which fabricates residences ranging from custom cottages to multimillion-dollar mansions.
Karlson’s model combines Epoch’s factory construction with his custom work. Once Epoch’s trained crews transport and set the prefabricated structure, Karlson’s crew and subcontractors complete the home – from custom flooring and tiling to carpentry and wiring.
“We do the foundation, septic system, permitting, and then work closely with the Epoch crew as they set the house. Then, we complete all the detail work ourselves after they leave,” said Karlson.
Originally published in the March/April 2007 issue of Cape Business
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